What are the positive economic profits

Reference no: EM13190586

A potential entrepreneur is trying to decide whether to open a new health spa. She presently makes $35,000 per year as an aerobics instructor and will have to give up this job if she opens the new health spa. If she chooses to open the spa, it will cost her $200,000 per year in rent and other operating expenses.
a. What are her accounting (explicit) costs?
b. What are her opportunity costs (explicit cost + implicit cost)?
c. How much would she need to make in revenues to earn positive accounting profits? Positive economic profits?

Reference no: EM13190586

Questions Cloud

What is the application layer protocol : What is the server IP address and what is the application layer protocol involved - what is the client port number for data download?

State the concentration of all acetate species : How many grams of acetic acid will you need to prepare the 500 mL buffer? Note that the given concentration of acetate refers to the concentration of all acetate species in solution.

Define democracy and define reform : Define democracy and define reform. What aspects did Populist and Progressive reform movements have in common that reflected those definitions and specify how so in each case.

State the optimum point to ensure the maximum yield of c : which is the desired product, can decompose to product F, how might you ensure that you stopped the reaction at the optimum point to ensure the maximum yield of C?

What are the positive economic profits : A potential entrepreneur is trying to decide whether to open a new health spa. She presently makes $35,000 per year as an aerobics instructor and will have to give up this job if she opens the new health spa. If she chooses to open the spa, it wil..

Identify the source port number : Identify the source port number and identify the destination port number and what is the length of the data?

Assume you are interested in going into business : "Assume you are interested in going into business and wish to secure a franchise. Research a franchise that interests you (one place to start is Franchise Direct). Why did you choose this franchise?

The standard heat of formation of standard molar entropy : The standard heat of formation of WO3(s) is -843 KJ/mol, and its standard molar entropy

How to install enough capacity to produce : Firm A has developed a new product and must now decide whether to install enough capacity to produce either one or two units of the product. It expects production costs (including capacity building) to be C(q) = 8q + q2 and it estimates demand for..

User Account

All Pages